CX Daily: China’s Assault On Big Tech’s ‘Walled Gardens’
Cover Story: China’s assault on big tech’s ‘walled gardens’
China’s months-long regulatory campaign targeting the tech sector is taking aim at a common practice that leading industry players deploy to foil rivals — blocking external links, which regulators consider anti-competitive.
For years, large Chinese internet companies from e-commerce behemoth Alibaba Group to social media giant Tencent Holdings have used various means to block their users from sharing links to posts and products on other companies’ platforms. These techniques set up what are known as “walled gardens” to protect the creators’ own digital ecosystems, stymie rivals’ growth and prevent users from spending their cash elsewhere.
Power supply squeeze leads several Chinese provinces to impose restrictions
A handful of provinces across China are enduring an electricity supply squeeze that has prompted local governments to impose power cuts and rationing on industrial users.
In China’s Central Hunan province, power generators have at times been falling short of electricity demand by 3 million to 6 million kilowatt-hours (kWh), according to a warning issued Wednesday by the State Grid Hunan Electric Power Co. Ltd.
Key Apple, Tesla suppliers halt production amid China power crunch
FINANCE & ECONOMY
China’s latest virtual currency bans drove Huobi Technology Holdings Ltd. to stop new Chinese mainland users from signing up.
Shares in crypto exchange Huobi slump as mainland users face expulsion
Shares of Huobi Technology Holdings Ltd., an affiliate of cryptocurrency exchange Huobi Global, tumbled more than 30% in Hong Kong Monday morning, after China’s latest virtual currency bans drove the operator to stop new Chinese mainland users from signing up.
Huobi Technology, which mainly provides virtual asset related services to institutional clients, recovered some of those losses to close at HK$7.85 ($1.01), down 21.5%, as the major Bitcoin and Ethereum trading platform also promised to close existing China-based accounts by the end of the year.
The exchange said it will conduct an orderly clean-up of its existing mainland clients under the premise of ensuring the security of their assets, according to a statement released Sunday.
Bitcoin tumbles as China widens ban on crypto transactions
Sustainable finance /
Beijing, Brussels set to issue common standards for sustainable finance this year, PBOC official says
China and the EU are expected to publish the first set of common classification standards for sustainable finance by the end of this year, a move that aims to make it easier for companies to issue green bonds and other such investment products in foreign markets, according to Chen Yulu, a deputy governor of the People’s Bank of China (PBOC).
Chen made the comment Saturday at the annual meeting of the Green Finance Committee (GFC) of the China Society of Finance and Banking.
China awards wholly owned mutual fund license to third foreign firm
American asset manager Neuberger Berman Group LLC is the latest foreign company to win access to China’s booming mutual fund market after the country’s securities regulator cleared its application to operate a wholly owned mutual fund business on the Chinese mainland.
Neuberger Berman joins BlackRock Inc., the world’s largest asset manager, and U.S. asset manager Fidelity International in entering the sector and competing with more than 150 fund managers who had a combined 23.5 trillion yuan ($3.6 trillion) of assets under management through 8,400 mutual funds at the end of July, data (link in Chinese) from the Asset Management Association of China (AMAC) show.
Heavy rains in China trigger emergency flood response
Heavy rains inundated several Chinese regions, with casualties reported in Southwest China’s Sichuan province and Central China’s Henan province, adding more disasters to a year of unprecedented heavy rains and floods in the country, along with extreme weather conditions.
On Sunday, the National Flood Control and Drought Relief Command Headquarters instituted a level 4 flood emergency response, the lowest in the country’s four-tier system. The emergency management authority also dispatched working groups to provinces including Henan and Shaanxi to assist local officials.
Quick hits /
Editorial: How China stands to gain from joining pacific trade pact
Global tax reform is on track, but hurdles remain
BUSINESS & TECH
The Ministry of Housing and Urban-Rural Development has ordered an inventory that will collect key numbers about Evergrande’s real estate projects around the country.
In Depth: Local governments take control of Evergrande’s revenue from home presales
Multiple local governments have taken control over China Evergrande Group’s real estate project presale revenue since August, Caixin learned, in a move to protect the rights of homebuyers’ and ensure the funds don’t get misused.
Work on many of the debt-ridden developer’s real estate projects have been shut down. Local governments from about 10 provinces have decided to strengthen capital supervision over Evergrande’s presale revenue. Since the end of August 2021, those governments have adopted so-called centralized management of Evergrande’s capital inflows and outflows by setting up special fund trusteeship accounts for the company’s local projects, Caixin learned.
Tip Sheet: Clues to Evergrande’s fate may lie with past rescues
Evergrande’s electric-car unit plunges after warning of cash shortage
In Depth: Behind HNA’s fall, a web of nepotism spreading from New York to Hainan
More than seven months after Chinese conglomerate HNA Group Co. entered a government-led bankruptcy restructuring, the company’s chairman and its CEO have been detained by police on suspicion of criminal misconduct, casting more clouds over one of China’s most complicated bankruptcy cases.
Details of the alleged crimes committed by the two executives were not disclosed by the police, but Caixin’s year-long investigation, including a review of the company’s filings and previous interviews with multiple former and current executives, found that HNA Chairman Chen Feng, now deceased co-founder Wang Jian and multiple senior executives owned companies controlled or invested in by family members that conducted business with HNA.
Hydrogen cars may be as cheap to make as fossil-fuel vehicles by 2030, state researcher says
Hydrogen-powered cars could cost the same to produce as traditional gas-guzzlers by the end of the decade, a government-backed think tank predicted, in a sign policy support is growing for the alternative fuel source.
Huang Yonghe of the China Automotive Technology and Research Center (CATARC) said hydrogen fuel cells — which on average account for more than two-thirds of the cost of producing a car they power — could be 80% cheaper by 2030.
Fatal e-bike explosion highlights lack of safe charging options
Two recent e-bike battery fires in China’s capital — one of which turned deadly — put a spotlight on the limited options for riders to safely charge their bikes in the world’s largest market for the vehicles, as authorities step up bans on doing so at home.
Five people were killed in a fire in a residential complex last week in Beijing after a lithium e-bike battery being charged by a resident inside his apartment exploded in the middle of the night, with flames soon spreading to other floors of the building, according to a social media post from the city fire service (link in Chinese).
Quick hits /
Huawei CFO freed by judge, ending two-year extradition case
Huawei’s Meng Wanzhou welcomed home
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